Thailand Board of Investment

March 2016

Thailand : Green Technology

Investment

Outline

New Investment Promotion Strategy

Investment Promotion for Renewable Energy & Bio Polymer

Measure for Energy & Environment Improvement

Policies to support Green Industry

Group Example Activities

A18-year CIT

exemption with

no ceiling

• Production of electricity or electricity and steam from garbage or

refuse derived fuel

• Energy Service Company (ESCO)

A28-year CIT

exemption

• Production of electricity or electricity and steam from renewable

energy, such as solar energy, wind energy, biomass or biogas

• Manufacture of fuel from agricultural, waste or garbage

• Manufacture of Bio-plastics

A3

5-year CIT

exemption

• Industrial estate for environmental protection

• Manufacture of biological fertilizers, organic fertilizers, and

bio-pesticides

A4

3-year CIT

exemption

• Manufacture of products from agricultural by-products or

agricultural waste

• Manufacture of Recycled Fiber

BOI Incentives for Green Investment (1/2)

Thailand’s Renewable Energy Outlook

E L E C T R I C I T Y F U E L H E A T I N G

Source: Stakeholder Workshop on RE Energy and Experience Sharing by DEDE as of October 10,2012

Thailand Alternative Energy Development Plan

Committed to the development

of low-carbon society

Government

Funding

On R & D

Activities

Encouraging

Private-Led

Investment

Alternative Energy Development Plan

(AEDP: 2012-2021), Revision 2013

Target 25 % of RE in Total Energy Consumption

By 2021

New type of energy

Tidal Wave Geothermal

2MW 1MW

3MW*

Solar Wind

3,000 1,800

MW MW

4,800MW

Small

Hydropower

324 MW

Bio energy

Biomass Biogas Solid waste

4,800

MW3,600MW 400MW

8,800MW

Bio fuel

Ethanol Bio-dieselNew Energy

Replacing gas

Compressed

Bio-methane

Gas

9ML/d** 7.20ML/d 3ML/d 1,200 tons

Source: Ministry of Energy as of Aug 19, 2013 *Megawatt (million watt) **Million litres/day

• Future change of “Adder” to Feed-in-tariff (FiT) policy

• BOI Tax incentives scheme

• Some direct subsidy (10-30%) on Biogas and Solar-hotwater projects

• ESCO Revolving Fund (April 2013-April 2015)

• Abundant Supply

• Market driven

• Pricing Strategy to

promote high-RE-Fuels

(E10,E20,E85 and B5)

Supporting

scheme

RE Target for Total Power Generation: 13,927 MW in 2021

(Data as of Aug 19, 2013)

BOI Promoted Renewable Power Plants

Fuel

Approved Operated

No Capacity

(MW)No

Capacity

(MW)

Waste

(MSW & Non Hazardous

Industrial Waste )

18 235 - -

Biomass 200 2,816 39 517

Biogas 200 593 41 114

Solar Farm 363 2,119 54 179

Solar Rooftop 153 83 1 0.2

Wind 35 1,911 - -

Waste Heat 7 172 3 86

Total 976 7,929 138 896.2

as of Dec 2015

THAILAND: Bio-Industrial Hub in Asia

Short Term

• Improve cultural practices to increase yield

• Transfer appropriate technology to farmers

• Compounding technology

• Conversion technology

Medium-Long Term

• Invest in R&D and more collaboration (PPP)

Bio-based Industrial Hub

• Strategic partners both R&D and investment

• Market growth-size study and creation

Source: TBIA as of Apr 2, 2014

BOI Promoted Bio-Plastics

Product Capacity (Tons)

Investment ( Mill US $)

Lactic Acid 349,000 330.0

Lactic Acid Dimer 104,000 90.0

Polylactic Acid (PLA) 75,000 150.9

Bio Succinic Acid (BSA) 34,000 90.5

Bio Butanediol (Bio-BDO) 45,000 101.5

Polybutylene Succinate (PBS) 60,000 247.0

รวม 667,000 1,009.9

Measures for Energy Efficiency and Environmental Improvement

• Encourage existing factories to upgrade for energy

conservation, alternative energy utilization or reduction

of environmental impact

• Project must complete implementation within 3 years

** The application must be submitted within 2017 **

10

BOI Promoted in Measure for Energy Efficiency and Environmental Improvement (2007-2015)

Measures BOI Promoted

Project

Promoted results

No. Investment( Mill US$)

Energy

Conservation

75 480.0 The energy conservation can reduce

to 620 million US$

Alternative

energy utilization

38 181.1 The alternative energy such as solar

energy, wind energy, biomass or

biogas to replace the use of fossil

energy

Reduction of

environmental

impact

56 1,235.0 - NOx Loading reduce 75.0 g/s

- SOx Loading reduce 30.4 g/s

- VOCs Loading reduce 25.8 g/s

- Waste water reduce 350,000 m3

Total 169 1,896.1

Financial support

Green Industry

Set Target & Quota

Industrial Policy

R&D Support

Thailand Policies to Support Green Industry

12

EMS for SMEs

Public relation

MoU signed

Networking

ES for SE

Clean Technology

Green Productivity

GHG Reduction

Lean Mfg

ISO 14001

Environmental and Safety

Awards

Green Labelling

11,769 3,477 2,657 51 5

5 Steps Process Development

Number of Green Industry registered in Thailand

Office of the Board of Investment555 Vibhavadi-Rangsit Road, Chatuchak, Bangkok 10900

Tel. 0-2553-8111 Fax. 0-2553-8222e-mail : head@boi.go.th Website : www.boi.go.th